How is average life defined?
For ABS with bullet maturities, average life is determined by the expected principal payment date. For amortizing ABS, average life is defined as the weighted average life to maturity based on the prepayment assumptions and market conventions listed below. These prepayment assumptions will be revisited periodically. For auto rental fleets, the average life is the length of any revolving period plus 6 months, and for mortgage servicing advances, the average life is the length of any revolving period plus 2 years. The weighted average life for CMBS is based on the assumption that each loan amortizes according to its amortization schedule and pays in full on its maturity date, without prepayment.
